Wesdome Gold Mines Ltd WDOFF

Equity increase = 100 million

[snowshoedb]

Surprised to see the company can potentially increase equity by $100 million.

The only reason I can see doing this is one of three things:
1) the company is concerned at the returns from Kiena will not be as robust as they were projected to be… IE all in sustaining cost will be much higher

2) the delay, clearing commercial production and increased capital expenditures on the mind have used up funds that needed to be used for seating/moving forward another project… Perhaps Moss Lake

3) the company is worried about a takeover before they prove up additional resources at either of Wesdome mines... if this is true, we should see a budget for an awful lot of drilling in 2023.

Obviously, I'm hoping that the money is needed so that they can carry out number three.

[wafertechian]

Very good analysis snoeshoedb.  I agree with you number three would be my perference, but, I believe number two will be the reason.  Moss lake might need a hand starting up pre-production, we will see.

[PulpCutter]

Moss Lake is gone. "Goldshore" now.

[snowshoedb]

I'm not sure it can be said that it is gone for the following reasons: 1) Goldshore (Brett Richards) mgmt team are long time associates of Wesdome (Duncan Middlemss) mgt team. 2) 2 Directors (Mike Michaud & Heather Laxton) of Goldshore are from Wesdome 3) Moss Lake shares owned by WDO = 27%. Wesdome accounts for the investment on an equity basis because they are deemed to have "